What is the development prospect of environmental protection industry?

(1) First of all, the environmental protection industry depends on policies, which has two meanings. First, let pollution source enterprises do environmental protection (such as emission reduction) or environmental protection research (such as energy conservation and emission reduction, smart cities), which is policy-oriented. In my own understanding, letting enterprises do environmental protection work is contrary to the profit-seeking of enterprises:

Enterprises often have to spend a lot of money to buy professional environmental protection instruments and hire professional environmental protection personnel, so that the pollution situation of enterprises can meet the national regulations. The existence of enterprises is to pursue interests. If the policy does not force enterprises to carry out environmental protection work, then enterprises often do not take the initiative.

(2) The potential demand of environmental protection industry in China is strong. In the investment framework of growth stocks, the potential demand space of the industry is often the most concerned issue for investors. In recent years, China's capital market has given a relative valuation premium to emerging industries that represent the direction of economic transformation. An important reason behind this is that the market is not optimistic about the potential demand space of many traditional industries.

(3) In a relatively long time dimension, due to factors such as population cycle and urbanization rate, the potential demand space of many industries is indeed debatable. However, investors need not worry about the potential demand space of China's environmental protection industry, which is a sunrise industry with extremely strong potential demand.

(4) Urban pollution has been increasing in recent years, and cities are the root of almost all social and environmental diseases we face. Environmental problems such as garbage siege, black and odorous water bodies and smog have been bothering us. We must adhere to the development path of low-carbon and environmental protection, and build a green and low-carbon ecological city according to the requirements of green development concept.